Montauk Renewables, Inc. (NASDAQ: MNTK, JSE: MKR) has announced a significant development as it enters into a material definitive agreement known as the Third Amended and Restated Loan Agreement and Secured Promissory Note (“the MNK Amendment”). The agreement, filed as Form 8-K with the U.S. Securities and Exchange Commission (SEC), marks an important milestone for the company.
The MNK Amendment, executed on June 21, 2023, signifies modifications to the existing Second Loan Agreement and Secured Promissory Note between Montauk Renewables and Montauk Holdings Proprietary Limited (“MNK”), previously known as Montauk Holdings Limited. Under this amended agreement, the principal amount of the loan has been increased from $8,940,000 to a total of $10,040,000. Furthermore, the loan’s maturity date has been extended from June 30, 2023, to December 31, 2023.
In addition to these changes, the MNK Amendment also provides Montauk Renewables with an increased security interest. The company will now hold a security interest in 976,623 shares of Montauk’s common stock owned by MNK, up from the previous 800,000 shares. The terms of the MNK Amendment largely align with those of the original MNK Loan Agreement.
Montauk Renewables initially entered into the MNK Loan Agreement to fulfill its obligations as outlined in the Transaction Implementation Agreement, which was executed in connection with the company’s initial public offering.
Renowned financial institution Investec Bank Limited serves as the sponsor for Montauk Renewables. The company is primarily listed on the Nasdaq stock exchange and holds a secondary listing on the JSE.